Italian banks support a digital euro but call for investment flexibility
Date: 2025-11-10 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
The Italian Banking Association (ABI) stated that the concept of a central bank digital currency (CBDC) is of strategic importance for Europe. According to ABI CEO Marco Elio Rottigny, a digital euro reflects the idea of "digital sovereignty" and strengthens Europe's position in the face of technological transformation. However, he emphasized that the financial burden on banks is too great and should be distributed more evenly over time.
Rottigny proposed considering the project within the framework of a "dual approach": the development of a digital euro should proceed in parallel with initiatives by private banks to create their own digital currencies. This scenario, he believes, will accelerate innovation in the financial sector and reduce pressure on market participants.
The ABI's position comes amid growing skepticism from representatives of France and Germany. Their main concern is that the introduction of a digital euro could lead to a run on deposits from commercial banks and weaken their financial stability.
The European Central Bank (ECB) notes that the digital euro project aims to adapt the monetary system to the digital age. It should preserve the relevance of cash in a new form, enhance the competitiveness of European payment systems, and reduce dependence on foreign technology providers. Furthermore, the ECB believes that the digital euro will be a response to the growing popularity of stablecoins.
At the end of October, the ECB Governing Council met in Florence and decided to move on to the next stage of the project after two years of preparation. If the relevant legislation is approved, trials of the digital euro will begin in 2027, with its full launch planned for 2029.
ECB Executive Board member Piero Cipollone noted that the digital euro will provide citizens with the familiar benefits of cash, adapted for the digital environment. He emphasized that the project will enhance the resilience of the European financial infrastructure, reduce costs for merchants, and create a foundation for further technological innovation.
Earlier in September, nine leading European banks joined together in a consortium to issue a euro-pegged stablecoin in accordance with the MiCA regulation. This move demonstrates the growing interest of the European financial sector in the development of digital currencies and confirms that the transition to a digital economy is becoming a priority for the region's banking community.
